E&Eplayer, EG Industries Berhad is confident the better result it experienced in Q2022 coupled with its 5G manufacturing venture will bode well for the company for the coming year.
The group has taken a step forward by collaborating with a US-based customer to manufacture 5G routers giving the company a head start for new frontiers via research and development to create higher margins products for high-technology industries.
CEO Dato’ Alex Kang said “We remain committed to playing a key role in embracing the Smart City vision of utilizing digital technology to make urban systems more efficient, cost-effective, and environmentally sustainable. Therefore, our venture into the box-build 5G routers represents a step in the right direction as we look to gain more experience in manufacturing the best technologies.
Currently, EG is doing a pilot test run for an advanced technology that requires surface-mount technology (SMT) background and hopes that it will be able to commence mass production within the next few months. Dato Alex expects the production to boost the company topline in the coming quarters.
In reporting the company’s second quarter results, EG registered 56.5% higher net profit of RM7.9 million as compared to RM5.1 million in the previous corresponding year. Q2 also saw the group’s topline grow 19.9% to RM358.5 million from RM299.0 million a year ago. Overall, 2Q22 results improved due to higher sales for both data storage and consumer electronic products.
EG Industries recorded net profit of RM9.9 million in 1H22, 3.7% higher than the RM9.5 million posted in the previous corresponding period on favorable product sales mix and savings in operating expenses. The bottom-line growth was despite topline declining 6.2% in 1H22 to RM555.5 million from RM592.1 million, mainly due to the loss of production capacity following the imposed Enhanced Movement Control in Bakar Arang, Kedah.
